Mobile data services provider Zamano said sales in both the UK and Ireland declined last year, but overall business stabilised in the second half of 2010.
Revenue for the year was €15.8 million, down from €25.1 million in 2009 as the UK and Ireland recorded falls in sales of 55 per cent and 45 per cent respectively.
"In early 2010, changes to regulation in Ireland resulted in many of Zamano's business-to-business partners withdrawing from the market, driving the very sharp decline in Irish revenues," said chief executive John O'Shea. "In the UK, the continued failure of Payforit to function as a straightforward sign-up and payment mechanism meant that the company has remained unable to benefit from the increase in mobile inventory availability."
Earning before interest, tax, depreciation and amortisation fell to €900,000 from €4.3 million a year earlier, the company said.
The company reduced its goodwill by €12.7 million, resulting in a pre-tax loss of €13.3 million for the year.
Gross margin declined by 5 per cent to 29 per cent as additional content costs were incurred and marketing costs rose as the company explored new market channels.
Revenue in the US grew by 9 per cent, although Mr O'Shea noted that the market there remains challenging as the pace of smartphone adoption is high. "This demands very rapid deployment of new services and constant innovation in terms of exploring new channels to market," he said.
Spain recorded growth of 149 per cent.
Chairman Mike Watson described the year as one of "two contrasting halves", noting serious declines in the first half of 2010.
"Stability has been maintained into 2011, and a further reduction in the cost base has restored moderate levels of profitability in the core mobile content business," he said.
In January, the company agreed an amended loan facility with Lloyds Banking Group's Irish unit, Bank of Scotland Ireland, which included a revised capital repayment schedule.
Mr Watson said 2011 would be another challenging year, but said the board was confident that stability had been achieved and capacity to grow again would follow.
Mr O'Shea said Zamano would focus on new business opportunities to grow the company.
"While still experiencing very challenging times in the market sector in which the company operates, the board is satisfied that progress is being made," he said.
"The board maintains its stance of cautious optimism regarding the future prospects of the business."
